GAP insurance

Honest John Back Room » Motoring discussion
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Tue 8 Feb 2005 23:55
GAP insurance - Savvy Sue
As posted elsewhere, we're getting close to buying a new car. Haven't finally sorted the finance, but thought we would get the figures from the dealer as well as from everywhere else.

The dealer is offering 'GAP' insurance. For a one-off payment of £4-500 (sorry exact figures not to hand), we are allegedly 'guaranteed' the difference between what we pay for it today, and what we get for it if it's a loss for any reason. Of course we haven't been given the T&C so I don't know all the situations which would be covered: certainly if it was nicked and not recovered, or written off.

Now since in 20+ years of motoring I've only had one write-off (someone else driving) and one non-recovered theft, I'm not 100% convinced by this. Anyone had any experience?
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Wed 9 Feb 2005 00:02
GAP insurance - blue_haddock
Well i sell it as part of my job so i have a fair experience of it. The price they are quoting you is a rip off - i'd be amazed if the policy cost the dealer any more than fifty quid. And regardless of what he says the price is not fixed.

Like you say the likelihood of you using it is very slim but if you don't get it and you prang the car you'll kick yourself. I would say to the dealer you will have it but for a much reduced cost (£100 to £150)

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Wed 9 Feb 2005 00:28
GAP insurance - john deacon
u can buy gap insurance direct from insurance company much cheaper than that, just type "gap insurance" into a search engine such as google for some quotes

mr haddock towards the end of the year ill probably be swapping one toyota for another, if u can save me wasting the time necessary to get a good deal ill buy u a pint
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Wed 9 Feb 2005 00:34
GAP insurance - blue_haddock
If you buy a car from me John you'll be in a convenient place to buy me a pint - i work equi-distant between the bass and marstons breweries!
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Wed 9 Feb 2005 08:40
GAP insurance - Savvy Sue
Thanks chaps! T'other half used to work in insurance but it was a long time ago (gosh I've just realised how long ...) and this was a new one on him ...
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Wed 9 Feb 2005 08:55
GAP insurance - daveyjp
There are also different types. Some pay the difference between the payout from your insurance and the cost of a replacement car in the event of a total loss - but the purpose of insurance is to put you back to the position you were in before the loss, so this GAP (Guaranteed Asset Protection) insurance seems a con.

The other type pays out the difference between what you are paid by the insurance and the invoice cost of the car. I've been offered it, but when I explained the loan would only be 50% of the value of a brand new car (so 50% equity there), I'd be paying it off over two years and in the first year my insurance pays for a replacement car in the event of a total loss he knew I wouldn't be buying!

BTW GAP insurance is available from third parties. If you want it shop around then go back to the dealer with the lowest price and ask them to beat it.
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Wed 9 Feb 2005 09:09
GAP insurance - mountainkat
I've been unlucky to have 2 cars written off in 3yrs & wished I had GAP insurance, needless to say after just buying my replacement car I now have it - not big into these extra "insurance's" but IMHO this one is certainly worth the money

Don't pay anymore than £200 for a 3yr policy though
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Wed 9 Feb 2005 09:32
GAP insurance - Wilco {P}
I've just had a quote from a dealer on a car - purchase price £18K, 3 year PCP 20,000 miles per year - the GAP insurance costs £108.
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